Managing the finance department and keeping track of all your expenses and payments is one of the most tedious parts of any business. Not only that, it must be accurate and forms the backbone of your success. The easiest solution is to seek help from professional accountants and bookkeepers who will handle these for you. These services are available virtually these days alongside the conventional remote methods.
This post discusses why virtual bookkeeping services are so popular, their benefits, and how they work.
Defining Virtual Bookkeeping and How is Works
This method allows the bookkeeper to work remotely from anywhere instead of working at the client’s office. Advanced computerized software which are cloud-based is used to provide the services. This information is easily accessible as it seamlessly syncs with the cloud and is constantly updated by the virtual bookkeeper meaning you can access it any time and from anywhere.
The following are the steps of how this service functions:
- The business grants remote access to the bookkeeper or accountant to their server, software and all the financial documents.
- The accountant or bookkeeper is provided read-only access and can categorize the transactions. The payments will be processed only on approval from your end.
- The software must be purchased by the business owner or the bookkeeper/accountant depending on the arrangements they have and register.
- The customization in the software must be made so that it ideally fits your requirements. However, the same program has to be used on both ends for a seamless process.
- You can easily get in touch with your virtual bookkeepers regarding the service or to get feedback and advice on tax strategies and more.
- Reports are always up-to-date
The key decisions of the business lie solely on your financial status. Hence, staying up-to-date with its current state is essential to take crucial business decisions immediately. The virtual bookkeeping company updates all the transactions on a real-time basis since the software is automated to a certain extent. The best software is used to maintain a high-level of accuracy on your account’s statements.
- On-time always
While bookkeepers and accountants perform the audits and tracking transaction records annually, with virtual bookkeeping you can get a financial report throughout the year. The time frame is pre-negotiated when you are opting for the service and any reputed company will ensure that the deadline is consistently maintained. This, in turn, will help you design business strategies keeping the latest financial status in mind.
- Sharing access of the data
User-friendly Software like QuickBooks give you access, authority, and the power to delegate access to other employees. This is a necessary and helpful feature when you are unable to access the system for any reason so the designated employee can do so on your behalf. Rest assured that even when you give the permissions, the data is completely protected and tampering by any other party is impossible.
- Direct access to the data
Outsourcing the bookkeeping functions ensures that you can access your financial data from your mobile or laptop. The bookkeeping software allows for information across both parties to be synced. All the updated data from the bookkeeping company’s end will be reflected in your system almost immediately. You can easily keep track of the data round the clock while still having complete control over it.
- Setting up the server
Most virtual bookkeeping companies will help you set up a server where all your additional information will be stored. This is particularly helpful when you are trying to access the information from another time zone when accessing your company’s system is not feasible.
- Managing sales tax
Calculating and paying the sales tax on behalf of the company is one of the many services virtual bookkeepers provide. When you are hiring a team and negotiating the terms of service, specifically mention the tax payment and return related requirements that you have. These professionals can advice you on business strategies as well that will help you to maximize your tax returns.
Virtual bookkeeping services are very popular these days for the flexibility and control they allow business owners over their finances. The above-mentioned features are what you can expect when you hire a virtual bookkeeper. With this guide, it’ll be easier to choose the most suitable firm.